Skip to main content

NEW YORK (TheStreet) -- China's most recent food health scare is hurting restaurant chains and even consumers.

Last week, meat processor the Husi Food Company, the Shanghai office of Illinois-based OSI Group, was accused of selling spoiled meat to popular food chains throughout China and Japan.

Recognized as one of the country's largest meat suppliers, with eight locations throughout the country, many chains were affected including, McDonald's (MCD) - Get McDonald's Corporation Report, Burger King (BKW)  and Starbucks (SBUX) - Get Starbucks Corporation Report.

YUM! Brands Tumbling on Yet Another China Food Health Scare

Although all of the companies involved have issued apologies and said they are taking appropriate precautions to ensure the incident doesn't happen again, OSI Group continues to wrestle with damage control.

On July 26, OSI issued a statement online declaring Shanghai Husi products had been officially withdrawn from the market.

TheStreet Recommends

"To help rebuild the trust of our customers and consumers, as well as to cooperate with the official investigatory process, we are compelled to withdraw all products manufactured by Shanghai Husi from the market place. We are also conducting a thorough internal investigation into any possible failures on the part of current and former senior management."

This statement comes after several McDonald's locations stopped using meat products from the supplier. Last week, McDonald's Holdings Co, in Japan, announced that it would no longer source its meat from China, and instead will source products from Thailand.

As a result, locations throughout China, Hong Kong and Japan have temporarily gone vegetarian, providing customers with limited options, according to McDonald's company websites and media outlets. 

McDonald's was little changed on the day $95.78.

Burger King, Starbucks, Papa John's Touched by China Food Health Scare

China's Health Scare Rips Through Asian Restaurant Chains